Residential Market Update

Posted by Richard Kitts on Wed, Aug 26, 2015 @09:32 AM

Market Commentary

The U.S. Federal Reserve has triggered the latest round of speculation about interest rates with the release of the minutes of its July meeting. Those notes seemed to indicate a bias toward an interest rate hike.

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Richard Kitts, AMP
President/Mortgage Broker
Tristar Funding Corporation o/a The Mortgage Centre
rkitts@mortgagecentrekw.com
519-743-4365

Tags: The Mortgage Centre KW, The Mortgage Centre, interest rate

1.8 Trillion Household Debt, where do yo stand?

Posted by Richard Kitts on Tue, Aug 25, 2015 @01:00 PM

Finally something that is easy to follow and set up in Life Stages.    

What I found interesting is that 12% of Canadians hold 43% of the National Household Debt. That tells me that 88% of Canadians are very responsible with their debt.   

70%  of The National Debt is Mortgages which 82% of Canadians feel is Good Debt and 84% of Canadians feel that Real Estate is a good Long-Term Investment.  With a large percentage of debt at low mortgage rates, it is essential for The Bank of Canada to maintain these low rates to ensure stability in our economy?

Comments by Richard Kitts, Mortgage Broker Tristar Funding Corp, The Mortgage Centre Kitchener Waterloo.

__________________________________________________________________________________ 

Canadians have amassed a record $1.8 trillion in household debt, double what it was a decade ago.  Referencing various reports prepared by financial services industry analysts including the Canadian Association of Accredited Mortgage Professionals (CAAMP), Autowatch, CEB Tower Group and McVay & Company, learn how we arrived here.

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Richard Kitts, AMP
President/Mortgage Broker
Tristar Funding Corporation o/a The Mortgage Centre
rkitts@mortgagecentrekw.com
519-743-4365

Tags: The Mortgage Centre KW, The Mortgage Centre

CMHC Releases Quarterly Results of its House Price Analysis and Assessment Framework for Canada and 15 Markets

Posted by Richard Kitts on Wed, Aug 19, 2015 @11:44 AM
OTTAWA, August 13, 2015 - Canada Mortgage and Housing Corporation (CMHC) released updated results today from its House Price Analysis and Assessment (HPAA) framework, which is designed to detect the presence of problematic conditions in Canadian housing markets.

The overall assessment of risk detected by the framework is high for Toronto, Winnipeg and Regina. In Toronto, the high overall risk reflects a combination of price acceleration and overvaluation and overbuilding, particularly of condominium and apartments.

"Nationally, CMHC continues to detect a modest risk overvaluation. However, out overall assessment of the risk of problematic conditions varies from centre to centre due to regional differences in housing markets. Imbalances in local housing markets could be resolved with further moderation in house prices or improving economic conditions," said Bob Dugan, CMHC's Chief Economist.

"In the case of Toronto, strong price acceleration in 2015 reflects a larger share of sales of pricier homes. The rise in house prices have not been matched by growth in personal disposable income, giving rise to a modest risk of overvaluation."

The risk of problematic market conditions continues to be assessed as moderate for Montreal and Quebec due to the detection of some risk overvaluation.

In Toronto, Ottawa and Montreal, we are monitoring the risk of overbuilding. Condominium units under construction are near historical peaks. Inventory management is therefore necessary to make sure that these condominium units under construction do not remain unsold upon completion.

Low overall housing market risk is observed for Vancouver, as none of the individual risk factors are currently detected.

The results released today include those for the national market as well as 15 Census Metropolitan Areas (CMAs) - Vancouver, Victoria, Calgary, Edmonton, Regina, Saskatoon, Winnipeg, Toronto, Hamilton, Ottawa, Montreal, Quebec, Moncton, St. John's and Halifax (with Victoria, Hamilton and Moncton being added from the previous report in April).

The centres recently added, Victoria, Hamilton and Moncton are assessed as low overall risk. None of the risk factors are detected in Victoria, while overheating is detected in Hamilton, and overbuilding in Moncton.

The HPAA is a comprehensive framework that is designed to assess housing market conditions by taking into consideration the economic, financial and demographic drivers of housing markets. The use of multiple indicators of housing conditions, which incorporate various data sources and price measures, provides a robust picture of overall housing market conditions.

The full text of the latest HPPA update if available in the August supplement of Housing Now - Canada Edition at http://www.cmhc.ca/HPAA.

This is the third release of the HPAA, a quarterly report. The next HPAA report is expected to be released in October.

As Canada's authority on housing, CMHC continually works to increase the amount of available data and analysis on the housing market.

CMHC draws on more than 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.
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Richard Kitts, AMP
President/Mortgage Broker
Tristar Funding Corporation o/a The Mortgage Centre
rkitts@mortgagecentrekw.com
519-743-4365

Tags: The Mortgage Centre KW, mortgage broker waterloo, mortgage broker, CMHC, The Mortgage Centre, mortgage broker KW

Positive News for First-Time Homebuyers

Posted by Richard Kitts on Fri, Aug 14, 2015 @12:29 PM

As the Chair of the Government Relations committee I have had the honour of personally visiting Ottawa with the Minister of Finance Office, The Prime Minister Office and the Housing Caucus to ensure our message of the importance of mortgage brokers and our industry to the Canadian economy is heard loud and clear.   Personally being involved with suggestions on how the government can help house Canadians and seeing the fruits of our labour come to fruition tells me our government is listening.  The message of increasing the HBP withdrawal was one of our agenda items.  You can be confident that CAAMP and its committees are dedicated in ensuring our industry is top of mind with our government. 

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Richard Kitts, AMP
President/Mortgage Broker
Tristar Funding Corporation o/a The Mortgage Centre
rkitts@mortgagecentrekw.com
519-743-4365

Tags: Homebuyers, mortgage broker, first-time homebuyers, first-time buyers, The Mortgage Centre, mortgage centre canada

Bank of Canada cuts key rate as economy contracts, exports stall

Posted by Richard Kitts on Fri, Jul 17, 2015 @12:52 PM

Stephen Poloz is refusing to call it a recession, but the Bank of Canada Governor says the country needs another jolt of interest rate relief as the economy shrinks and exports stall.

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Richard Kitts, AMP
President/Mortgage Broker
Tristar Funding Corporation o/a The Mortgage Centre
rkitts@mortgagecentrekw.com
519-743-4365

Tags: Kitchener-Waterloo Mortgage, mortgage broker, stephen poloz, interest rates, Bank of Canada, Canadian Dollar, Canada's economy, economy, rate cut

The buzz on the street spreads quickly

Posted by Richard Kitts on Thu, Jul 16, 2015 @12:02 PM

Today it was released that the Bank of Canada has cut its overnight lending rate to 0.5%. This is in wake of some weaker than expected economic results (that don’t seem to be affecting the KW housing market too much right now!).

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Richard Kitts, AMP
President/Mortgage Broker
Tristar Funding Corporation o/a The Mortgage Centre
rkitts@mortgagecentrekw.com
519-743-4365

Tags: Kitchener-Waterloo Mortgage, mortgage broker, Variable rate, rate cut, bank prime rate

Bank of Canada lowers overnight rate target to 1/2 per cent

Posted by Richard Kitts on Wed, Jul 15, 2015 @12:13 PM

The Bank of Canada today announced that it is lowering its target for the overnight rate by one-quarter of one percentage point to 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.

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Richard Kitts, AMP
President/Mortgage Broker
Tristar Funding Corporation o/a The Mortgage Centre
rkitts@mortgagecentrekw.com
519-743-4365

Tags: Canada, Kitchener-Waterloo Mortgage, mortgage broker, Bank of Canada, ottawa, economy, Inflation, rate cut

Real estate deals allow electronic signatures

Posted by Richard Kitts on Tue, Jun 30, 2015 @09:47 AM

Real estate deals allow electronic signatures

TORONTO - Ontario home buyers and sellers will soon be allowed to provide electronic signatures on real estate documents.

Changes to the Electronic Commerce Act take effect July 1, making electronic signatures legally equivalent to handwritten ones in real estate deals.

Current regulations require real estate documents, such as agreements of purchase and sale, to be signed by hand on hard copies.

Patricia Verge, president of the Ontario Real Estate Association, calls the changes to the act "great news for realtors as well as consumers," and says the option to sign electronically will make home-buying and selling more efficient.

Six other provinces, including British Columbia, Quebec, New Brunswick, Manitoba, Newfoundland and Labrador and Prince Edward Island, allow electronic signatures for real estate transactions.

By The Canadian Press | June 29, 2015

View article here >>

http://www.thespec.com/news-story/5700820-real-estate-deals-allow-electronic-signatures/

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Richard Kitts, AMP
President/Mortgage Broker
Tristar Funding Corporation o/a The Mortgage Centre
rkitts@mortgagecentrekw.com
519-743-4365

Tags: Ontario, Kitchener-Waterloo Mortgage, mortgage broker, real estate, electronic commerce act, ontario real estate association

Canada Mortgage and Housing Corporation Release

Posted by Richard Kitts on Wed, Jun 17, 2015 @03:59 PM

Ontario_rental_markets_June_16_2015-1

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Richard Kitts, AMP
President/Mortgage Broker
Tristar Funding Corporation o/a The Mortgage Centre
rkitts@mortgagecentrekw.com
519-743-4365

Tags: Ontario, Kitchener-Waterloo Mortgage, mortgage broker, CMHC, rental market

Market Commentary from First National .. Optimism still appears to be Reigning in Canada's housing sector

Posted by Richard Kitts on Wed, Jun 17, 2015 @03:30 PM

Market Commentary from First National:

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Richard Kitts, AMP
President/Mortgage Broker
Tristar Funding Corporation o/a The Mortgage Centre
rkitts@mortgagecentrekw.com
519-743-4365

Tags: Kitchener-Waterloo Mortgage, mortgage broker, housing, CMHC, Bank of Canada, mortgage, building permit, high ratio